Adial Pharmaceuticals Announces a Warrant Inducement Transaction for Approximately $2.86 Million in Gross Proceeds

Core Viewpoint - Adial Pharmaceuticals has entered into a warrant inducement agreement with an institutional investor for the immediate exercise of existing warrants, aiming to raise approximately $2.86 million for working capital and corporate purposes [1][3]. Group 1: Warrant Inducement Agreement - The agreement involves the immediate exercise of Series C-1 Warrants to purchase up to 4,025,000 shares and Series E Warrants to purchase up to 5,190,675 shares at a reduced exercise price of $0.31 [1]. - The investor will receive new unregistered Series F Warrants to purchase up to 13,823,512 shares, with the same exercise price of $0.31, which will be exercisable upon shareholder approval [3]. - The closing of this transaction is expected around December 1, 2025, subject to customary closing conditions [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for working capital and other general corporate purposes [1]. Group 3: Company Overview - Adial Pharmaceuticals is focused on developing therapies for addiction and related disorders, with its lead product AD04 targeting Alcohol Use Disorder (AUD) [6]. - AD04 has shown promising results in reducing heavy drinking in patients during the ONWARD™ pivotal Phase 3 clinical trial, with no significant safety concerns reported [6]. - The company believes AD04 may also have potential applications for treating other addictive disorders such as Opioid Use Disorder, gambling, and obesity [6].